The government will start direct cash transfer of subsidy to bank accounts of beneficiaries in 20 districts from Tuesday, finance minister P Chidambaram said on Monday.

The Direct Benefit Transfer system will be implemented in seven schemes such as scholarships and old age pensions from Jan 1.

The system will be rolled out in various schemes according to the due date of payment.

Announcing all this at a news conference in New Delhi, Chidambaram said the government has identified 43 districts in which the scheme will be rolled out by the beginning of March.

“The scheme will be rolled out in 11 more districts on Feb 1 and 12 more districts will join on March 1,” said Chidambaram, adding the scheme would be implemented in all the districts of the country by the end of 2013.

Chidambaram said the government has no intention to provide cash subsidy for food, fertiliser and petroleum products.

“At this stage there is no intention to transfer the subsidy on food, fertiliser, diesel and kerosene. The existing system will continue,” he said.